1031 Exchange Connecticut
Connecticut is a prime location joined with rustic landscapes – including mountains for skiing and hiking and, and beaches for swimming and sailing – make the state a great place to call home for families, millennial, and empty-nesters.
Connecticut’s diverse economy is stimulated by insurance, agriculture, manufacturing, technology, and finance. And the state’s film and tourism industry generate roughly $15 billion annually. Connecticut is also home to 17 Fortune 500 companies including Eversource Energy, United Technologies, United Rentals, Charter Communications, Xerox, and EMCOR Group. The state’s growing job market is drawing top talent from across the nation, all of whom need housing.
Connecticut has the highest per capita income across the United States. Unfortunately, however, the cost of living is costly, and housing affordability is a pressing issue.
Why should you do a 1031 Exchange in Connecticut?
Economic and Population Growth Trends
Increasing home values – The median home value in Connecticut is well above the national average. Also, home values have risen by 4.5% over the past year and are anticipated to increase by another 4.1% in 2019. Median rent prices in Connecticut are way above the national average. A robust rental market with steady appreciation is the perfect recipe for real estate investors looking for maximum ROI.
High taxes – Property taxes in Connecticut are quite higher than the national average. The ‘state’s average effective property tax rate is 2.02%, which is the 4th highest across the country. Connecticut’s sales and income taxes are also above the national average, which can make affording houses an issue.
High mortgage delinquency rate – Connecticut currently has a 2.2% mortgage delinquency rate, which is higher than the national average of 1.6%. Many homeowners are still under on their mortgages, which is increasing rental demand.